Pull the Trigger on a Gun-Control Trade

Use options on two gun stocks to play on fears that President Obama will push for tougher gun laws in his second term.

A new term for President Obama could lead to tougher gun laws, and that should increase the stock price of the few publicly traded gun makers.

Shares of Sturm, Ruger (ticker: RGR) and Smith & Wesson (SWHC) are already sharply higher on the news of President Obama's re-election, even as the broader stock market plummets in Wednesday trading. These stocks have generally beaten the market during the president's first term.